WEINBERGER FINDS $8 BILLION IN '84 BUDGET REDUCTIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00363R001202710028-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: November 19, 2007
• Sequence Number: 28
• Publication Date: January 12, 1983
• Content Type: OPEN SOURCE

Approved For Release 2007/11/19: CIA-RDP85M00363R001202710028-3
CURRENT NEWS
PART II - MAIN EDITION - 1130
THIS SUPPLEMENTS PART I - EARLY BIRD EDITION
WEDNESDAY, JANUARY 12, 1983
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NEW YORK TIMES 12 January 1983 Pg. 15
Pentagon Budget Planning criticized by 2 Studies
By CHARLES MOHR
SpedartoTLeNewYarkTtmee
WASHINGTON, Jan. 11- The large
military budgets planned by the Rea-
gan Administration will probably not
increase the weapons and fighting abi-
lilty of United States armed forces be-
cause Pentagon planners have consis-
tently and seriously underestimated the
costs of weapons, two studies have con-
cluded.
Both. studies, one from within the
Pentagon and the other by a conserva-
tive research group, call for fundamen-
tal reforms in the way military budgets
are made and military planning is con-
ducted.
One of the basic conclusions of both
studies is that the cost of purchasing,
maintaining and operating the military
equipment considered for purchase by
the Pentagon in its current five-year
plan will be significantly greater than
the $1,600 billion that President Reagan
had hoped to budget for the military be-
tween 0ctober 1982 and October 1986.
This "mismatch between reality and
planning," or "underfunding" of future
PENTAGON.. .Pg. 4.
PHILADELPHIA INQUIRER
12 January 1983 Pg.2
Thais lobbying U.S.
for arms stockpile
PHILADELPHIA INQUIRER 12 e
Weinberger find$ $8 billion in' '84:
budget reductions
By Frank Greve
Inquirer Washington Bureau
WASHINGTON -,Defense Secre.
tary Caspar W. Weinberger bowed
yesterday to White House and con-
gressional pressure and agreed to
slow the growth of military spending
by about $8 billion next year.
More than half the proposed reduc-
tions would come from lower fuel
costs and smaller estimates of future
inflation, Weinberger said. Much of
back a proposed 7.6 percent military BY-RICHARD HALLORAN
pay raise. Sbedaltom.u.,YorkTlmee
Conspicuously exempt from the
cuts, which represent a saving of WASHINGTON. Jan. 11-Secretary
about 3.3 percent, are the Reagan of Defense Caspar W. Weinberger an-
administration's ambitious programs nounced today that he had recom.
to buy new military hardware. Wein mended to.President Reagan an $8 biil-
berger said the expensive weapons lion reduction in military spending pro-
were "needed to regain our national posed for 1984 to help cut the projected
A.eeow+ From security." Federal deficit of about $200 billion.
BANGKOK, Thailand - Thai mili- President Reagan hailed the cut. In "In response to economic problems,
tary leaders this week are urging the Dallas, he told reporters after a Mr. Weinberger told reporters at the
chairman of the U.S. Joint Chiefs of speech to a farm group that the new Pentagon, "we have agreed before, ah
Staff to.,support the establishment of cuts would not set back "in any sub? we agree now, to modifications in our
a . U.S. , "war reserve contingency stantial way our defense program. original program to rearm America."
pool" in the Pacific region and to That still remains a top priority - President Reagan, speaking in Dal-
speed up the delivery of U.S. weapons the security of our people." las, asserted that "we are not reversing
to Thailand. a Thai spokesman said. He said the cuts are not "a ploy" our course" on increasing military
Army Gen. John W. Vessey Jr. ar- and were not "intended to persuade power. The President contended, "It is
rived here yesterday for a three-day., Congress." But any further cuts im- not setting back in any substantive way
visit, his first since his appointment posed by Congress, he warned, at all our defense program, because
in July. He was stationed in Thailand "would be endangering the security thatstill remains our top priority."
in the early 1970s while a brigadier of our country." Tepid Reaction in Congress
general. "I'm delighted" with the cut, he
Thailand's supreme military com- said. "I'm accepting that gladly. Cap Initial Congressional reaction was
mander, Gen. Saiyud Kerdphol, pro- did it. I'm pleased with it." tepid, with supporters of increased mill-
posed the contingency pool at a re- Weinberger was under pressure tary spending expressing disappoint-
conference last month. It from all sides to slow down military ment and advocates of smaller military
would stockpile small arms, aircraft' spending to offset soaring deficits, budgets asserting that the cut was not
engines, spare parts and other equip but he had hoped to hold the cuts to enough.
meat for use by threatened small less than $4 billion. He indicated in a In a related development, Adminis-
nations lacking the financial means surprise press conference yesterday tration officials said today that Treas-
to maintain their own reserves. WEINBERGER. - . Pg. 4 ARMS BUDGET.. . Pg.! 2
Helen Young, Chief, Current News Branch, 697-8765 Daniel Friedman, Assistant Chief
For special resparrh eoruirec nr rlietrihr.t,nn n-ill U urr,. 7nh1rnff f`hinf lJns^.n r`C....:...- a A.._L.__ -..ice 695-2884
Approved For Release 2007/11/19: CIA-RDP85M00363RO01202710028-3
NEW YORK TIMES
12 January 1983 Pg. 2
WEINBERGER URGES
CUT OF $8 BILLION
IN '84 ARMS BIIDCET
 Approved For Release 2007/11/19: CIA-RDP85M00363RO01202710028-3
PART. II --'MAIN EDITION 12 JANUARY:1983
ARMS BUDGET... Continued . military construction. r_rnicnnI Rtn.-c+ f+1 MRRAflM.
ury Secretary Donald T. Regan was
preparing major income tax reform
proposals that could lead to a flat tax or
a consumption-based tax that might be
included as one of the major initiatives
in the President's State of the Union
Message.
A flat income tax would generally re-
peal most of the current deductions and
set one or several tax rates to cover all
incomes instead of the progressive
rates and itemized deductions now in ef-
fect. With a consumption tax, the
money that people saved, as long- as it
was in a special new type of savings ac-
count, would not be subject to income
tax. It would be the remainder of their
income that would be taxed.
The new. Weinberger plan, which
would slow the growth in military
spending, is one of three key decisions
the President has before him as the Ad=
ministration enters the final days of
preparing the 1984 Federal budget. Ad-
ministration officials said they hoped to
show a Federal deficit declining to less
than $100 billion by 1988 instead of rising
to the nearly $300 billion deficit pre:
dicted recently if there were no change
in current domestic programs and tax
policies.
The other decisions, Administration
officials said, are, a provisional plan to
raise taxes by $100 billion over a three-
year period starting on Oct. 1, 1995, and
a selective freeze on domestic Govern-
ment spending that would include lids
on pay rises for Federal employees.
Mr. Weinberger, who departed from
his practice of not commenting on his
recommendations to the President, said
the Director of the Office of Manage.
ment and Budget, David A. Stockman,
who had reportedly been insisting on
greater reductions in military spend-
ing, had agreed to the cuts. But Mr.
Weinberger declined to say that Mr.
Reagan had formally made a decision.
There are two sides to the military
budget, both of which the Administra.
tion is proposing to reduce below the
levels projected for the next fiscal year.
One is appropriations, or budget au-
thority, not all of which is spent in the
year they are voted by Congress. The
other Is outlays, or the amount that ac.
tually will be spent by the Pentagon in
the fiscal year that begins next Oct. 1.
Mr. Weinberger said he had record.
mended 'a reduction of $11.3 billion from
the appropriation of $284.7 billion that
the Administration had projected for
the fiscal year 1984, which begins Oct. 1.
In response to questions, he asserted
.that would lead to 38 billion in savings
from projected outlays of $247 billion in
the same fiscal year. The remaining
savings would come later.
About half of the 1984 reductions were
the consequence of lower inflation rates
and fuel prices, Mr. Weinberger said,
with the other half to come from holding
down military pay increases, canceling
some training exercises and deferring
The Defense Secretary said=no large.
weapons programs had been cut in the-
latest budget review, but- he declined to,
disclose what programs may have been,
reduced-or expanded as the' military.
budget was prepared earlier. They. will,
become known when the budget is'sub?
mitted to Congress latethis month.
The proposed savings?for 1984,.there:
fore, may have little long run effect;
since spending for weapons rises, in.the
years following. initial appropriations.
In addition, about half the' reductions
projected' for 1984 might have beeir..
saved anyway, since they arOthe conse.
quence of lower rates of inflation. and
fuel-prices. .
Mr. Weinberger said' that while the
reductions would protect essential
parts of the Administration's military
program, "no one should believe' than
these reductions will notL adversely af-
fect some of our military capabilitiest"
He said those included readiness and
training.
No Adverse Effects Seed
But he asserted, ."None of these re-
ductions would adversely affect the
major programs needed to regain our
national security and to restore the bal-
ance by which we can effectively main.
tain peace and prevent aggression."
He said that he could not recommend
further reductions and that he would re-
quest more money later if inflation esti-
mates proved wrong or the price of fuel
went up.
The Defense Secretary brushed off
suggestions that the latest reductions
would depress increases ? in military
spending below the 7 percent annual in-
crease in real growth, after;inflation,
that were pledged when the Reagan Ad-
ministration took office two years -ago.
He asserted that "percentage leaps are
not relevant."
In both budget authority and outlays,
the new Administration proposal for in.
creases in military spending come to
14.9 percent, including inflation, when
measured against budget authority and
outlay levels voted by Congress for
1983. Mr. Weinberger declined, how-
ever, to disclose the Administration's
estimate for inflation, which would be
subtracted from those figures.
Reductions In Growth
If the newly proposed increases were
to be measured against the Administra.
'tion's increases announced a year ago,
as Mr. Weinberger earlier contended
should be the gauge, the budget-author-
ity increase comes to 6 percent and in
outlays to 10 percent. With inflation sub.
stracted, both growth 'figures would
probably be less than 7 percent.
Mr. Weinberger, who asserted -that
the President's ,$1,600 billion *five-year
plan for enhancing the armed forces
bad already been?cut by $41 billion, said
'he hoped that "everybody-on-both sides
of the aisles" Irv Congress would agree
'that the cut announced todayiwould be
enough.
'Reaction m the-5enateArmed Serv-
2
FROM THE WALL STREET JOURNAL
JANUARY 12, 198& Pg:. 1
World-Wide
Richard:Schweiker.Is resigning as-Health
and Human Services secretary toy become
president of the-American Council.of:Life In-
surance, a- trade group. ' The resignation,
which caught. some White House officials by
surprise; is. to be. announced today. It follows
by two weeks, Transportation Secretary,
Lewis's resignation. (See story, one Page 2)?.
Thirteen U& cones visiting Mos-
cow said the Soviet Union- is, weighing the
"destruction" of some of Its SS-20? medium-
range missiles, after reducing their total
number in eastern Europe to 162. But the re-
duction is contingent on NATO ending plans
to deploy new U.S. medium-range missiles
In Western Europe, they said.:.
-A DC-8 cargo plane carrying a canister of
low-level radioactive material crashed early
yesterday near Detroit Metropolitan Air-
port, killing all three crewmen. The United
Airlines jet was hauling the material from
Cleveland to Los Angeles. A health official
said the canister's seal was unbroken.
NEWS SUMMARY ... Pg . 4
ices Committee was mixed..The chair-
man, Senator John Tower, Republican
of Texas, said the cuts would "probably
diminish slightly our capabilities but
will not cut into bone and marrow." He
said he would not have agreed with the
size of the cut had he been consulted.
Senator Carl M. Levin, Democrat of
Michigan, said, "It's not enough and it's '
in the wrong places." Mr. Lavin, who
has repeatedly criticized t e AdjEjs~
tration's proposals for rapid increases
in military spending, said that big
items, such as the MX missile, the B-1
bomber, and nuclear aircraft carriers
should have been cut rather than pay
and training that have the effect-.of
reducing military readiness..
Until today, Mr. Weinberger seemed
to have been successful in fighting off
efforts by White House and budget offi.
cials to slice into military spending. Mr.
Reagan, in his news conference last
week, appeared to agree with Mr. Wein-
berger and Defense Department offi.
cials said that only cuts arising from
new calculations of inflation and fuel
prices could be expected.
As .projections .of .Federal deficits
;grew worse, however, Mr. Reagan's
economic and budgetary advisers be-
came more insistent that the Defense
Department share in spending reduc-
itions. Those officials carried theircam-
,paign into the press.with,a series of.
carefully placed leaks that angered the
Presidentand led him.toorder aclamp.
down.
Approved For Release 2007/11/19: CIA-RDP85M00363R001202710028-3